Swiggy’s losses increased six-fold to Rs 2,364 crore in FY19

Meanwhile, Swiggy’s revenues grew by 177% to Rs 1,297 crore compared to Rs 733 crore last fiscal.
Swiggy’s losses increased six-fold to Rs 2,364 crore in FY19
Swiggy’s losses increased six-fold to Rs 2,364 crore in FY19
Written by:

Online food order delivery startup has seen its revenue grow while its losses have also climbed steeply, as the figures now available for the last financial year 2018-19 show. The figure for losses in FY19 is Rs 2,364 crore, when compared to Rs 397 crore, during 2017-18. As mentioned, there was an enhancement in the revenue figures from around Rs 733 crore to Rs 1297 crore, an increase of 177% over the previous year. These details have been sourced by Times of India from the company’s filings with the Ministry of Corporate Affairs.

Swiggy has had no difficulty in raising funds from the market and it has continued to receive investments from its existing as well as new investors. While the major burn has been in creating and expanding its marketing in competing with rivals Zomato and Uber Eats, the figures under different heads of expenditure incurred in the year 2018-19 show some areas where the difference over the previous financial year appear significant.

Employee expenses for 2018-19 stood at Rs 544 crore (increase of 185%); advertising and marketing expenses Rs 778 crore (increase-six-fold) and delivery cost Rs 1,594, the highest figure among the different heads of expenses.

Incidentally more financial figures for the food delivery company have emerged from the filings by Prosus, an investor in Swiggy with its shares listed in Amsterdam. According to its filing in November 2019, Swiggy has posted a revenue of Rs 875 crore for the six-month period April to September 2019, which is double the figure from the previous year. However, the losses also stand higher at Rs 1,960 crore.

Despite all these, the investor has reposed full faith in the food delivery startup saying it enjoys market leadership in India and it remains bullish about the future prospects. The triple digit growth in revenue is also cited as an example of the potential for the company to grow.

Swiggy has had its business expanded both vertically as well as horizontally, one of the reasons for the higher level of expenses. It has now expanded to 100 cities and is delivering 500 million orders a year. It has added Swiggy Stores, which is the grocery delivery business and Swiggy Go, the parcels vertical. Besides, there is the SuprDaily subsidiary that does milk and other essentials delivery each morning. Swiggy itself is claiming that the jump in orders by 4.2 times is an indication of its core strength in adding more customer base and it will pave the way for better results in the future. On a one to one basis, Swiggy may be the leader in the Indian context, whereas Zomato with its interests in the UAE etc. clocks a higher revenue overall than Swiggy.

Related Stories

No stories found.
The News Minute